Disney still has the magic

Disney shares hit a 52-week high today ahead of the company's fiscal fourth quarter earnings report after the close of trading.

Analysts were expecting a solid quarter for Walt Disney (DIS, news, msgs), with growth across all divisions, which include movies, theme parks, cable TV networks and consumer products.

Bears continue to point to the theme parks as the Magic Kingdom's weakest link, and they assert that the company overpaid for broadcast rights to National Football League games on Monday nights, said Credit Suisse analyst William Drewry.

"But (bears) forget that there's incremental revenue from ('Monday Night Football'), as well," Drewry said on CNBC's "Squawk Box." "Both (theme parks and NFL games) should continue to be growth drivers," said Drewry, who has an "overweight" rating on the stock.

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CNBC video: Drewry's bullish case for Disney

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Investors are still enamored with CEO Robert Iger, added Drewry. "They see him as somebody who is leading the company into the new digital realm."

Under Iger, the company cut a deal to provide content from ABC networks and Disney's film studios for Apple Computer's (AAPL, news, msgs) video iPod. The company also launched a Disney Mobile cellular phone service and an ad-supported Internet streaming of ABC shows.

Drewry said he's also bullish on media rival Viacom (VIA, news, msgs), citing greater-than-expected strength in the cable television advertising market.

Disney

The company is a media and entertainment conglomerate.

It owns the ABC television network. The broadcast unit also includes cable properties ESPN, ABC Family and the Disney Channel. It has stakes in the Lifetime, Arts & Entertainment and E! Entertainment channels.

Its ABC television network is the most popular among the 18- to 49-year-old audience coveted by advertisers, according to data from Nielsen Media Research. The network broadcasts the popular programs "Dancing With the Stars," "Lost" and "Grey's Anatomy." "ABC's ratings and revenue is tracking relatively strong, and we believe the network should continue to be a peer group growth leader," Drewry said. "ESPN has been growing at a solid clip as well, and ratings at the Disney Channel have been strong."

A new Disneyland theme park was opened last year in Hong Kong as a joint venture with the Hong Kong government. The company plans to develop a theme park in Shanghai. It has stakes in theme parks in Japan and Paris, and owns theme parks and resorts in Florida and California.

Its studio segment produces and distributes movies, television shows and home videos. Disney in January acquired Pixar Animation Studios. Some on Wall Street welcomed the deal on the premise that it would give Pixar Chairman and CEO Steve Jobs a bigger role in the Magic Kingdom.

The company in July unveiled a restructuring of its studio division, with a focus on Disney-branded films and a reduction in annual film output. It's also making a push into video games. The company this week said it will form a new studio to develop titles for the popular Nintendo DS handheld system and the upcoming Wii.

Disney earlier this year sold the bulk of its slow-growing ABC Radio assets to Citadel Broadcasting (CDL, news, msgs). But the company has aggressively expanded its Disney Channel.

According to Zacks, the average brokerage recommendation for Walt Disney is "hold."

Walt Disney on Nov. 9 was rated 9 out of 10 on StockScouter.